The average dividend yield of the S&P 500 is a paltry 2%. At that level, it’s almost better to look for a company that can grow 2% faster than its peers and be done with it. But I’ve found seven A-rated income stocks that are kicking off yields higher than the S&P 500 — and in one case, five times better than the S&P average. Plus, these income stocks have great growth prospects — they’re more than just income stocks and they make excellent total return plays.
In many of these stocks you can also reinvest the dividends (depending upon your broker) so you can slowly, continually buy the stocks. Then, whatever growth you get from the stocks is an added kicker that goes straight to your bottom line. Here are the seven income stocks that should continue to grow: Blackstone Group (BX), Aircastle (AYR), Digital Realty Trust (DLR), Home Properties (HME), China Mobile (CHL), Target (TGT) and Nordic American Tanker (NAT).